Baby Boomers and Long Term Care Choices
The large group of baby boomers are getting to that age where they have to must consider long term health care if they haven’t yet. The scary statistics show that less than 50% of the baby boomers are prepared for long term care, x2154 realize that long term care is important, however, 44% are prepared, even if it’s an increase in their savings. The problem is that most people don’t know what options are available, they may underestimate how important it is and how much it costs, or they may assume that health insurance will protect them.
Nursing homes cost an average of $100,000 annually, nurse aids costs about $85,000 annually for 6 hours each day, and health insurance will provide long term care coverage for up to 100 days in addition to co-pays, and health insurance will pay for nursing home expenses until the individual’s savings is depleted. Many who have purchased long term care did not read the fine print and researched their insurance company; some have discovered that even though they have been paying premiums, their insurance does not protect them twenty to thirty years later when long term care expenses are higher. Insurance companies are increasing existing premiums, making it less affordable.
If you’re looking for long term health care, look for a financially stable company with a reserves arrangement, read in-between the lines, fine print regarding length of coverage or daily benefit restrictions to reduce surprises after purchasing long term care. Long term health care will start once the individual develops serious cognitive difficulties such as Alzheimer’s or the inability to perform daily tasks. The Federal Government passed the Community Living Assistance Services and Support Act or known as the CLASS Act, a publicly financed long term care plan with low monthly premiums. Premiums will cost $100 to $200 each month and patients will be entitled to at least $50 of cash benefits per day for long term care. The plan will be finalized by the Secretary of Health and Human Services and people can purchase the plan by October of this year.
This program locks premium rates and patients won’t be denied because of current health reasons. CLASS Act is voluntary and the low premium rates and benefits depends on the number of participants. Employers who have the plan offer automatic payroll reduction but employees can decide to participate since many might need private coverage to be fully protected.
Long term care insurance can be two times more expensive or may not be available if you decide to purchase long term care in your 60’s. You should start looking for long term care programs in your 40’s. Ten percent of 45 to 62 year olds have purchased long term care programs. It is very critical that you purchase long term health care to protect yourself and your savings. Who knows what will happen in the future. If you reside in New York or New Jersey, consult Metropolitan Risk Advisory to help reduce your risks and protect you and your employees.
The large group of baby boomers are getting to that age where they have to must consider long term health care if they haven’t yet. The scary statistics show that less than 50% of the baby boomers are prepared for long term care, x2154 realize that long term care is important, however, 44% are prepared, even if it’s an increase in their savings. The problem is that most people don’t know what options are available, they may underestimate how important it is and how much it costs, or they may assume that health insurance will protect them.
Nursing homes cost an average of $100,000 annually, nurse aids costs about $85,000 annually for 6 hours each day, and health insurance will provide long term care coverage for up to 100 days in addition to co-pays, and health insurance will pay for nursing home expenses until the individual’s savings is depleted. Many who have purchased long term care did not read the fine print and researched their insurance company; some have discovered that even though they have been paying premiums, their insurance does not protect them twenty to thirty years later when long term care expenses are higher. Insurance companies are increasing existing premiums, making it less affordable.
If you’re looking for long term health care, look for a financially stable company with a reserves arrangement, read in-between the lines, fine print regarding length of coverage or daily benefit restrictions to reduce surprises after purchasing long term care. Long term health care will start once the individual develops serious cognitive difficulties such as Alzheimer’s or the inability to perform daily tasks. The Federal Government passed the Community Living Assistance Services and Support Act or known as the CLASS Act, a publicly financed long term care plan with low monthly premiums. Premiums will cost $100 to $200 each month and patients will be entitled to at least $50 of cash benefits per day for long term care. The plan will be finalized by the Secretary of Health and Human Services and people can purchase the plan by October of this year.
This program locks premium rates and patients won’t be denied because of current health reasons. CLASS Act is voluntary and the low premium rates and benefits depends on the number of participants. Employers who have the plan offer automatic payroll reduction but employees can decide to participate since many might need private coverage to be fully protected.
Long term care insurance can be two times more expensive or may not be available if you decide to purchase long term care in your 60’s. You should start looking for long term care programs in your 40’s. Ten percent of 45 to 62 year olds have purchased long term care programs. It is very critical that you purchase long term health care to protect yourself and your savings. Who knows what will happen in the future. If you reside in New York or New Jersey, consult Metropolitan Risk Advisory to help reduce your risks and protect you and your employees.